The Best and Worst Banks for PPI Claims

Posted on April 2, 2019 by Canary Claims exterier view of a modern building with a large "bank" sign on it

PPI claims have plagued the banks for a decade. But which banks are the worst offenders?

If you’re one of the millions of people who had a mis-sold PPI policy, you may have dealt with one or more of the banks during the process of reclaiming.

As the PPI deadline is now less than six months away, the banks are busier than ever handling an influx of claims. But every bank handles claims slightly differently. Some banks allow you to submit a claim online, while others require a lot of paperwork.

Unfortunately, you need to contact the relevant bank or lender to make a claim. If you don’t want to deal with the bank yourself, you can use a PPI claims company, such as Canary Claims, to do so on your behalf.  

Which banks make it the most difficult to submit claims? The data below reveals how many PPI complaints have been made and which banks make it the most difficult to reclaim. If you haven’t yet made a PPI claim, you must act before 29th August. Hopefully, this information will demonstrate how the various banks handle PPI claims and encourage you to start your claim as soon as possible.

Number of PPI Bank Complaints

Complaints data from the Financial Conduct Authority (FCA) highlighted that 3,161 financial firms received one or more complaints during the first half of 2018. The total number of complaints is 4.13 million.

Of this figure, 1.72 million were PPI complaints. In comparison, 1.55 million PPI complaints were made in the latter half of 2017 and 1.11 million in the first half of 2017. The next results will be released in April. We will likely see an ever-increasing trend of more PPI bank complaints being made until the deadline in August.

The increase in PPI complaints is likely largely driven by the advertising campaign from the FCA, which features Arnold Schwarzenegger.

Biggest PPI Refunds from the Banks

To date, the banks have repaid over £34 billion to customers. All of the large high street banks were involved in the mis-selling scandal and have paid back millions to customers.  

Lloyds Banking Group has refunded the most money since the PPI scandal came to light. Nearly £20 billion has been set aside for PPI claims from the banking group, which is currently receiving 13,000 PPI complaints per week.

Another bank that has shelled out a large amount is Barclays. The bank has paid over £9 billion for mis-sold PPI policies and has earned a negative reputation during the scandal for various reasons. Last year, it admitted to wrongly telling some customers they weren’t eligible for a refund when, in fact, they were. The chairman also claimed that people had turned into fraudsters by trying to make false claims.

Banks Making PPI Claims Difficult

Data from Which? reveals some banks are making it difficult for consumers to make claims. As well as refunding the most amount of money, Lloyds Banking Group is also noted as one of the worst for making PPI complaints difficult for consumers. Lengthy forms and needing to return paperwork quickly were two of the cited reasons for its difficulty. RBS came out the worst offender, with Lloyds and Nationwide coming in joint second.

According to the data, HSBC and Barclays handle PPI claims the best, due to fast response times and an easy process.

PPI and the Financial Ombudsman

The Financial Ombudsman Service (FOS) keeps a record of the number of complaints received and how many of those are upheld. In the data from 1st July to 31st December 2018, the average number of PPI complaints that resulted in favour of the consumer was 20%.

A breakdown of the figures shows that NewDay is the worst offender for wrongly rejecting claims — 65% of PPI complaints resulted in a refund for the consumer.

PPI is dealt with differently at every bank, and some clearly handle claims more efficiently than others. Unfortunately, you don’t get to choose which bank you lodge a complaint with — whichever bank mis-sold you a PPI policy is where you must contact regarding a claim.

If you can’t remember which bank — or banks — you had accounts with and you no longer have the paperwork, you can contact Canary Claims — we can find this information for you. With the deadline fast approaching, it’s vital to act now to submit a claim before 29th August.

Canary Claims charges just 15% + VAT (18% total) on successful PPI claim refunds. No matter which bank or lender you had a policy with, we can make a PPI claim on your behalf. Start your claim today!